Coffee Service

COVID continues to hammer Farmer Brothers sales, earnings in Q3 2021

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May 7, 2021

Farmer Bros Co. net sales fell 27.9% from $129.14 million in Q3 2020 to $93.15 million for the quarter ending March 31, 2021, driven primarily by lower sales of coffee, beverage and allied products due to the COVID-19 pandemic.

The company's net loss improved in the period, declining from a $39.8 million loss in Q3 2020 to a $13.7 million loss in Q3 2021.

Net loss per common share improved from a $2.32 loss in Q3 2020 to a 78-cent loss in Q3 2021 on both a basic and diluted basis.

The $93.15 million in revenue missed analyst expectations by $14.22 million, while the GAAP EPS loss of 78 cents missed expectations by 38 cents, according to Seeking Alpha.

Shares traded at $10.40 Thursday against a 52-week range of $3.40-$11.80.

As local governments across the country ease COVID-19 restrictions and vaccines are distributed and rolled out successfully, weekly sales improved during the quarter ended March 31, 2021, down 36% compared to pre-COVID levels.

During the month of April 2021, average weekly DSD sales were down approximately 27% from pre-COVID levels. The largest DSD revenue declines were from restaurants, hotels and casino channels.

In April 2020 DSD sales were down by approximately 65% to 70%.

Direct ship sales declined 23% compared to the prior year period due to lower coffee volume related to COVID-19 and the impact of coffee prices for cost plus customers, partially offset by improved volume from retail business and third party e-commerce platforms.

"March results were the best we've seen since the pandemic began, and we expect trends will continue to rebound as certain markets begin to more fully open and as certain parts of our business, such as healthcare and lodging, show continued recovery," Deverl Maserang, president and CEO, said in the press release. "Additionally, our new credit facility that we executed in April will give us improved borrowing costs and greater ability to leverage our collateral and operational plans, while allowing us to focus more fully on accelerating growth and innovation throughout the organization."

For an update on how the coronavirus pandemic is affecting convenience services, click here.